There are tremendous opportunities in terms of clientele, investment, business expansion, and more waiting to be taken advantage of in the US. You can leverage those opportunities sitting here in India.
One of the most popular business destinations in the world is the USA. This is why many Indian citizens are looking forward to establishing a business in the USA. But there are certain policies and protocols which need to be adhered to for establishing a successful venture in the laissez-faire haven of the world.
Read this article to understand how you can do it.
Ways in Which an Indian Company Can Set Up Business in the US
The company can do all its operations from India but have its set up in America. It is possible to have the brand building and marketing activities of the company in the US while all the remaining works are done in India.
Another option is to set up the company in the US where all its activities are completely undertaken. This company can then establish a subsidiary of the business in India.
Ways of Entering the US Market
When entering the US market the first thing to decide is which kind of structure you desire for your business. You need to choose the kind of entity that is the most suitable for you.
For foreigners wishing to incorporate a business in the US, the following two kinds of entities are recommended:
If you wish to establish a company to seek funding from venture capitalists, angel investors, etc., then the C-Corporation business structure will be a good choice. This is because such entities are considered to be more professional by investors, bankers, suppliers, and employees as they are independent legal entities.
The compliance formalities of a C-Corporation is more extensive compared to an LLC. You will have to maintain books of accounts and comply with other rules and regulations.
A limited liability company (LLC) is the most adaptable corporate structure. It provides you with tax advantages, liability limitations, and legal protection for your personal assets. Additionally, a limited liability company (LLC) can choose whether to be taxed as an individual or as a corporation. They are commonly referred to as ‘pass-through’ entities.
In simple terms, an LLC has the features of a partnership firm and a corporation and provides limited liability protection against claims and lawsuits.
Once you know which entity to form, the next thing you need to decide is the place where you want to set it up. There are various states like Nevada, Delaware, Wyoming, etc. where the business laws are very friendly and the rate of taxation is also low. After registering in these states, you can choose to operate the business in other parts of the United States as well.
Steps for the Formation of a USA Company
The following steps are the process of establishing a company in the USA:
- Choose a name for the company. It should be unique and not in use in the state you wish to establish your company.
- Then you need to appoint a registered agent who has a physical address in the state where you are forming a company. They must be available during business hours to sign legal documents of your intended venture as and when required.
- You can also apply for the Federal Employer Identification Number. This step is important if you ever want to open a bank account in the USA. Otherwise, it is an optional step.
- You can also apply for a Certificate of Authentication. This certificate is important in case you need to open a bank account in India or to produce proof that you have a company in the US (either a US corporation or LLC). Otherwise, it is optional.
The above-mentioned steps are a simplified version of the company formation procedure in the USA. Make sure to get in touch with our experts to a complete understanding of the formalities involved in incorporation in the US. You can get the entire process done for you by Vakilsearch’s team of professionals.
How Vakilsearch Can Assist
Vakilsearch helps you register your company in the USA from India in 3 simple steps –
- Firstly, we address all your queries regarding company incorporation in the USA
- Then, we will ensure that the entire process of documentation, filing & registration is completed swiftly without any errors.
- Additionally, we will also help you with the post-registration formalities and compliances.
1. Is it mandatory to have a Certificate of Authentication? What is it required for?
No, this certificate is optional. In case an individual who has established a company in the US wishes to open a bank account in India, then they might need to produce a certificate of authentication.
2. What does one need to do after a company has been formed in the US?
Once you have established a company, then you must adhere to the following requirements: 1. Arrange for a physical address 2. Open a bank account in the US 3. Open bank account in India 4. Obtain a US phone number 5. Get a website and logo 6. Open a merchant account